Document Type
Thesis - Open Access
Award Date
2020
Degree Name
Master of Science (MS)
Department / School
Economics
First Advisor
Hailong Jin
Keywords
Cost of Credit, Exchange rate, Fluctuation, Ghana, Inflation targeting framework, Vector error correction model
Abstract
Fluctuations in exchange rate and cost of credit affect most economies in the world. The problem arises with the uncertainty it generates and the challenges it poses to the economy. The volatility of the exchange rate has been studied extensively in the extant literature, but the problem continues to persist. This paper therefore investigates whether inflation targeting framework influences the exchange rate and cost of credit in Ghana using data from February 2001 to March 2019. Using vector autoregressive model and vector error correction model, the study reveals that the exchange rate situation improves in both the short and long run after the imposition of the inflation targeting framework. Also, in the short run, the cost of credit reduces after the policy, but it is insignificant in the long run.
Library of Congress Subject Headings
Foreign exchange rates -- Ghana.
Credit -- Ghana.
Inflation targeting -- Ghana.
Format
application/pdf
Number of Pages
40
Publisher
South Dakota State University
Recommended Citation
Glavee, Patrick, "Exchange Rate and Cost of Credit Fluctuations in Ghana Before and After Inflation Targeting Framework" (2020). Electronic Theses and Dissertations. 4070.
https://openprairie.sdstate.edu/etd/4070
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Rights Statement
